diff --git a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/IDependencyManager.kt b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/IDependencyManager.kt
index ea0917bb..aec3b3db 100644
--- a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/IDependencyManager.kt
+++ b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/IDependencyManager.kt
@@ -7,7 +7,7 @@ interface IDependencyManager {
     /**
      * Parse the id and return the correct IClasspathDependency
      */
-    fun create(id: String): IClasspathDependency
+    fun create(id: String, project: Project? = null): IClasspathDependency
 
     /**
      * Create an IClasspathDependency from a Maven id.
diff --git a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/Project.kt b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/Project.kt
index 278d2658..efd8e6e4 100644
--- a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/Project.kt
+++ b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/api/Project.kt
@@ -149,24 +149,24 @@ class Dependencies(val project: Project,
      * Add the dependencies to the given ArrayList and return a list of jar files corresponding to
      * these dependencies.
      */
-    private fun addToDependencies(dependencies: ArrayList<IClasspathDependency>, dep: Array<out String>)
-            : List<File>
-        = with(dep.map { DependencyManager.create(it)}) {
+    private fun addToDependencies(project: Project, dependencies: ArrayList<IClasspathDependency>,
+            dep: Array<out String>): List<File>
+        = with(dep.map { DependencyManager.create(it, project)}) {
             dependencies.addAll(this)
             this.map { it.jarFile.get() }
     }
 
     @Directive
-    fun compile(vararg dep: String) = addToDependencies(dependencies, dep)
+    fun compile(vararg dep: String) = addToDependencies(project, dependencies, dep)
 
     @Directive
-    fun provided(vararg dep: String) = addToDependencies(providedDependencies, dep)
+    fun provided(vararg dep: String) = addToDependencies(project, providedDependencies, dep)
 
     @Directive
-    fun runtime(vararg dep: String) = addToDependencies(runtimeDependencies, dep)
+    fun runtime(vararg dep: String) = addToDependencies(project, runtimeDependencies, dep)
 
     @Directive
-    fun exclude(vararg dep: String) = addToDependencies(excludedDependencies, dep)
+    fun exclude(vararg dep: String) = addToDependencies(project, excludedDependencies, dep)
 }
 
 class Scm(val connection: String, val developerConnection: String, val url: String)
diff --git a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/maven/DependencyManager.kt b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/maven/DependencyManager.kt
index 4e0b7ee8..910a58d1 100644
--- a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/maven/DependencyManager.kt
+++ b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/maven/DependencyManager.kt
@@ -7,6 +7,7 @@ import com.beust.kobalt.misc.KFiles
 import com.beust.kobalt.misc.KobaltExecutors
 import com.beust.kobalt.misc.log
 import com.google.common.collect.ArrayListMultimap
+import java.io.File
 import java.util.*
 import javax.inject.Inject
 import javax.inject.Singleton
@@ -16,16 +17,21 @@ class DependencyManager @Inject constructor(val executors: KobaltExecutors, val
         : IDependencyManager {
 
     companion object {
-        fun create(id: String) =
-                Kobalt.INJECTOR.getInstance(DependencyManager::class.java).create(id)
+        fun create(id: String, project: Project? = null) =
+                Kobalt.INJECTOR.getInstance(DependencyManager::class.java).create(id, project)
     }
 
     /**
      * Parse the id and return the correct IClasspathDependency
      */
-    override fun create(id: String) : IClasspathDependency {
+    override fun create(id: String, project: Project?) : IClasspathDependency {
         if (id.startsWith(FileDependency.PREFIX_FILE)) {
-            return createFile(id.substring(FileDependency.PREFIX_FILE.length))
+            val path = if (project?.directory != null) {
+                File(project!!.directory, id.substring(FileDependency.PREFIX_FILE.length))
+            } else {
+                File(id.substring(FileDependency.PREFIX_FILE.length))
+            }
+            return createFile(path.path)
         } else {
             return createMaven(id)
         }